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It follows the launch of Sanlam Partners, an initiative to give “culturally aligned” financial planning firms the chance to use some of its proposition and processes to help them grow before becoming part of Sanlam through a buy-out at a later stage.

Jonathan Polin, chief executive of Sanlam, said: “Earlier this year I announced the launch of Sanlam Partners, a way for adviser firms to leverage the benefits of the wider Sanlam Group while retaining control of their business.

“The initial response from advisers has been hugely positive and today's acquisition allows us to accelerate this concept, putting us in a strong position to bring on-board other adviser firms.

“This is another significant milestone in our mission to build a client-centric, advice-led and outcome-focussed business and I look forward to working with our new colleagues to making it a success.”

This is another significant milestone in our mission to build a client-centric, advice-led and outcome-focussed business.

In summer 2014 one of those subsidiaries, Financial Ltd, was handed a trading ban by the regulator for failures on control of appointed representatives, avoiding fines totalling more than £13m due to having insufficient funds.

Financial Ltd made a £120,481 loss for the financial year of 2014, up from a £28,193 loss for the previous year.

But Tavistock has estimated that in the year ended 31 March 2017 the business of Tavistock Financial would have reported gross revenues of approximately £13.4m with attendant costs of sales of £12m, and contributed earnings before interest, tax, depreciation and amortisation of some £109,000.

Brian Raven, chief executive of Tavistock Investments, said: “Our focus is on building closer relationships with our advisory partner firms, rather than on operating a traditional network business such as Tavistock Financial.

“We are now working with over 100 registered individuals and 40 appointed representative firms, all of whose businesses we would be pleased to acquire.

“Therefore, the Tavistock Financial business no longer fits with our strategy.

“However, in disposing of that company, it was very important to us that the interests of the staff, the network members and their underlying clients were protected. Sanlam UK has convinced us that they are the right firm to take the business forward.”